ESI revenues upParis 17 September 2001 ESI Group's revenues for the first half of 2001 reached 19.14 million euro, which corresponds to a growth rate of 7,2% compared to the first half-2000. Recent acquisitions account for 1.2 % of the growth rate. Given a constant exchange rate, volume growth rate would be close to 9.6%. The general economic slowdown observed during the first quarter was amplified during the 2nd quarter, though performances were uneven across regions.
In Europe and America the average growth rates were +10% and +19% respectively, while Asia displayed a negative rate of -7% (-1% if you exclude the exchange effect).
During the H1-2001, Europe represented 43% of consolidated revenues, Asia represented 48% and America 9%.
Despite the economic slowdown, ESI Group's product range continues to benefit from a high licence renewal rate (86%), in part due to the impressive add-on rate (14% of our existing customer base added features to their current software packages). Software revenues currently represent 72% of total revenues, which is identical to H1-2000.
ESI Group's under performance over the period can be mainly attributed to a slower than expected growth in new business, which nevertheless increases by 7% accounting for 20,5% of software revenues.
This is mainly due to key account customers and their suppliers delaying software and hardware investments. This trend is likely to continue during the 2nd half year, with a more favourable outlook in 2002.
ESI Group does not expect the current economic slowdown to impact the advent of the digital factory. Consequently ESI Group remains optimistic for the medium and long term.
The economic slowdown, especially affecting Asia, should continue over the entire fiscal year impacting the forecast 2001 revenues. We expect however to perform significantly better than in 2000, due to a good forecast in Europe.
ESI Group continues its development strategy, but with a definite caution, in order to guarantee its leadership in the coming years.
As a result, the profitability in 2001 should be less than expected, but still positive.
The M&A programme has been redefined to take new opportunities into account.
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